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Sep 30, 2021
AZEK Q4 2021 Earnings Report
Reported record fourth quarter and full-year fiscal 2021 results, with continued strong sales growth and expanding decking capacity.
Key Takeaways
The AZEK Company announced record fourth quarter fiscal 2021 results, with consolidated net sales increasing 31.1% year over year to $346.1 million and net income increasing by $103.0 million year over year to $38.6 million. The company is expanding decking capacity with an additional new fourth phase, expecting cumulative capacity to increase over 100% by the end of 2022.
Consolidated net sales increased 31.1% year over year to a record $346.1 million.
Residential segment net sales increased 31.1% year over year to $305.1 million.
Net income increased by $103.0 million year over year to $38.6 million.
Adjusted EBITDA increased $15.4 million year over year to $81.5 million.
AZEK
AZEK
AZEK Revenue by Segment
Revenue by Segment
Residential Segment Revenue
CapyFin.comCommercial Segment Revenue
CapyFin.com Forward Guidance
AZEK expects consolidated net sales growth to increase in the mid-teens year over year for full-year fiscal 2022. From an Adjusted EBITDA perspective, AZEK expects to deliver growth in the high teens with modest margin expansion year over year, inclusive of the startup costs associated with our capital investment programs.
Positive Outlook
- Expecting consolidated net sales growth of mid-teens year over year for fiscal 2022.
- Expecting Adjusted EBITDA growth of high-teens year over year for fiscal 2022.
- AZEK expects to see leverage on Adjusted EBITDA exiting the second quarter of fiscal 2022
- AZEK expects to see leverage on Adjusted EBITDA accelerating through the second half of fiscal 2022.
- Expecting consolidated net sales to grow in the range of 18% to 21% year over year for the first quarter fiscal 2022.
Challenges Ahead
- Guidance is inclusive of the startup costs associated with our capital investment programs.
- Uncertainty regarding reconciling items such as the variability in the provision for income taxes
- Uncertainty regarding the estimates for warranty and rebate accruals
- Uncertainty regarding the timing of the gain or loss on disposal of property, plant and equipment.
- Material changes to these reconciling items could have a significant effect on our Adjusted EBITDA guidance and future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income